Will Inflation Lead Growth?

[polpolik]

Quote from qll:

But I need to spend $4000 a month in Beijing to be in the middle class.

That not true. I lived briefly in Beijing, food and everything else is exponentially cheaper than in the US. Even DVDs are cheap

Imported products are more expensive but what you need to live as a middle class, you probably just need 1/4 or less of what you need to live in Chicago. Not even a comparison.

 

[qll]

Quote from polpolik:

That not true. I lived briefly in Beijing, food and everything else is exponentially cheaper than in the US. Even DVDs are cheap

Imported products are more expensive but what you need to live as a middle class, you probably just need 1/4 or less of what you need to live in Chicago. Not even a comparison.

I dont' trust cheap food. Many of my relatives run restaurants, in USA and in China. You don't want to eat there once you walk into the kitchen.

I am not sure when you lived in BJ. In 2005, I drove a $10K as an middle class. Now, many below middle class family drive $20K cars. Real esates, rents went up. Water bills, electricity bills went up. Even pork, wheat, rice went up (those future speculators are laughing.) I have not lived in the states for a while, not sure how the inflations are doing except gas prices.

 

[risktaker]

Ohhh, that's why the US is trying so hard to find life in outer space. 'Cause after China, I can't think of any country on earth that could take it's place for manufacturing relatively cheap stuff for the masses throughout the world.

Quote from polpolik:

By then, China would be ushering into the industrialized nation and their wages will go up at which point, another poor country will take over the manufacturing, and China will start importing stuff as it is cheaper now to import than to produce.

 

[deviltrader]

Quote from qll:

A BMW 328 costs $35K in USA with leather seat and auto shift. A BMW 325 costs $50K in China. LV bags, Hugo perfumes cost much more in China too.

I think it's more than $50k in China, but it's due to taxes not inflation. I know an Accord costs $50k there.